fonprode

FONPRODE
Development
Promotion Fund
Combating poverty is the main goal of the Spanish Agency for
International Development Cooperation (AECID).
The Development Promotion Fund (FONPRODE) makes available
to Spanish Cooperation a set of instruments, involving both
reimbursable transactions –basically loans and capital transactions–
and donations, in order to contribute to achieving this goal.
FONPRODE was created by Act 36/2010, of 22 October, and was
amended by Act 8/2014. Its operations are governed by its own
regulations, approved by Royal Decree 845/2011, of 17 June.
The creation of FONPRODE constituted a fundamental step forward
in Spain’s International development cooperation policy, and met
one of the historic demands of Spain’s civil society.
AECID
Avda. de los Reyes Católicos, 4
28040 Madrid
www.aecid.es
NIPO: 502-14-084-0
FONPRODE is a dedicated instrument at the service of the entire
Spanish Cooperation system, exclusively dedicated to operations
of an untied nature. Its fundamental goals are eradicating poverty,
reducing social inequalities and inequities between people and
between communities, promoting gender equality, defending
human rights, and achieving the sustainable human development
of impoverished countries.
FONPRODE is a fund without legal
personality managed by the Ministry
of Foreign Affairs and Cooperation
(MAEC), through the FONPRODE Office,
which reports to AECID.
FONPRODE has taken over the actions
approved both by the former Development Aid Fund (FAD) –which are
attributable to the Ministry of Foreign
Affairs and Cooperation– and by the
Microcredit Fund (FCM).
Traditional Earthenware. Photo: Pepa Acedo
Operations that may be
funded by FONPRODE, with
an untied nature.
Responsible Funding
Code and Management
Methodology.
FONPRODE operations
management cycle
Donations to States, regional or local public
administrations, and other entities
of a public nature, for projects, programmes,
strategies and modalities of programme-based aid.
• Donations to multilateral non-financial
development organizations.
• Donations for technical assistance, feasibility
studies for projects, and evaluations.
• Donations to trust funds in international
development financial institutions, or donations
to multi-donor funds managed or administered
by international financial institutions.
• Loans or credits and credit facilities on
concessional terms to States and, exceptionally,
to regional or local public administrations,
for funding development projects.
• Temporary acquisitions of shares or direct stakes
in equity or quasi-equity in collective investment
undertakings or other public-law entities
constituted in the country receiving the funding.
• Loans, credits or credit facilities to local financial
institutions for granting microcredits or other
micro-financial services.
• Temporary acquisitions of shares or direct
stakes in equity or quasi-equity in privatelaw entities, for investments supporting the
economic fabric or micro-, small- and mediumsized enterprises.
A Responsible Funding Code has been established
in order to achieve the full integration
of FONPRODE’s reimbursable operations,
as stipulated in FONPRODE’s regulations. This
Code sets forth the measures guaranteeing
coherence between the operations funded by this
Fund and the planning frameworks of development
cooperation policy, as well as compliance with
internationally-accepted standards.
Identification
•
Likewise, FONPRODE’s Regulations establish
the drafting of a management methodology
guaranteeing that operations are aimed
at achieving development results.
This will be done by MAEC, through its State
Secretariat for International Cooperation and
for Ibero-America (SECIPI), AEICD (FONPRODE
Office), and COFIDES (Spanish Company for
Development Funding), with the support of
Spain’s Technical Cooperation Offices and
Economic and Trade Offices abroad. When
identification involves International Financial
Institutions, it will be carried out jointly by AECID
and MINECO (Ministry of the Economy and
Competitiveness).
Analysis and Formulation
The operations selected are subject to analyses
on: development impact; social, gender and
environmental performance; contribution to
Spanish Cooperation’s goals and additionality
provided; financial feasibility and impact on
public deficit; and risk assessment in the case of
reimbursable operations.
Approval by the Executive Committee
and Authorization by the Cabinet
Approving proposals is the responsibility of
FONPRODE’s Executive Committee, which
is chaired by an official from SECIPI, with
representatives from MAEC and MINECO,
as well as from organizations and ministries
that manage funds that count as ODA. The
Committee Meetings are also attended by
the Instituto de Crédito Oficial (Official Credit
Institute–ICO), as the Fund’s financial agent, and
the Head of the FONPRODE Office, who acts as
secretary. The proposals approved are forwarded
to the Cabinet, which is responsible for giving
authorization.
Formalization
This is materialized in the signing of funding
conventions and agreements with the
beneficiaries.
Monitoring
This includes managing the operational
programmes, mid-term and final reports –both
financial and development-based–
and requests for amendments that do not
affect the conditions approved by the Executive
Committee and the Cabinet. Communication
with the beneficiaries and preparation of
and participation in the commissions and
committees for monitoring contributions, both
in the bilateral and multilateral spheres, will
be established in coordination with Spain’s
representations to international organizations
and other institutions.
Evaluation
All operations funded by FONPRODE will be
evaluated following the criteria set forth in the
Master Plan for Spanish Cooperation and the
other evaluation-related documents of Spain’s
international development cooperation policy.
Crafts woman. Photo: Rubén Saornil